Member Info for Jonah58

Edzi, you are, of course, right. In the long term this is a blip. But the point I am making is not the detail, but the message the company is sending to the retail investors which is a tad difficult to stomach. Anyway, rant over and back to the allotment to prune my blackcurrants!

'what is the deal with the placing?' I don't know where to start, Charttopper! Did we need it with all this income and a $40M loan facility with Riverfort for 'projects'? It was leaked. The timimng was dire. It was at a large discount to the Sp which was rising at the time. I've been here since Braemore days - retail investors kept this company going through tough times. There are posters on this board whose names I recognise from nearly 10 years ago. Some of them, like me, are not particularly wealthy and have put their own cash on the line. Now that things are going better, the loyal retail investors are of no use anymore and can be dispensed with. Let the institutions in for a song and the rest of you can b****r off now. If the money was essential, a rights issue would have given us the choice - I would have taken it up at 4p. I have sold a third of my holdings and will buy back at 3.8p if it drops that far, which it probably will.

2. The company has spent the equity money raised for Kabwe on Inyoni / Hernic. So either the Kabwe zinc / vanadium circuit gets pushed back or the raise will have to be repeated.
3. Finally, the company is still talking about copper projects. If this happens, this will also have to be financed by new equity.

That was the point of my previous comment TBTT. There is nothing to support the view that equity raised for Kabwe has been used at Inyoni. I refer you to the Kabwe section of the Annual report.

As for needing to raise equity for the copper project, we are already producing copper cathode and ramping up production. The feed is third party ore. I cannot see the need for further capital here.

As a follow up to my last post, here are some clips from the Annual Report.

Re Windsor: "The site will soon include Jubilee’s ground-breaking fine chrome recovery process as well as having the ability to produce a range of speciality chrome products. "

" Company implementing a re-capitalisation programme to expand and upgrade process efficiencies, which will include Jubilee’s fine chrome process – targeted completion Q1 2020"

Re: DCM. Key highlights include:• Commenced construction of fine chrome Q4 2018• Commercial production commenced Q1 2019• 25 000 tonnes per month reached during Q2 2019

I should add the the section on Kabwe is worth reading in its entirety. Several of my questions are answered in it.

Good weekend to all.

Hi Jolly. The fine chrome upgrade was first mentioned in the quarterly update for Q1 2018. Commissioning took place in Q4 2018 and the first chrome delivery was in January 2019. Given that we seem to have already started the fine chrome project at Windsor and possibly Inyoni, I would guess we should be somewher commissioning in Q3 2020, maybe earlier.

Helpful post, Jammer 15.04. We have all been expecting to run out the fine chrome at Windsor, but this is the first time I have seen it explicitly mentioned and, as you say, it seems to be some way down the line already. If the placing results in the anticipated 21% increased recovery of chrome at Windsor and Inyoni by the end of Q1 2020, then it will have been a good deal, though we have to accept that Inyoni won't last for too long and we will be touting for new sources of material there within three or four years. All looks good in the medium to long term, but as time passes and the grim reaper whets his blade I am becoming increasingly interested in the short term!

I agree MH, but I think we always planned to process copper, since the sulphuric acid ( a by-product of copper production) was included in the original deal - we had to sell it to Glencore.

Hi Sumo. Not a bad day really. Buys in the morning, sells later. Sp more or less steady at 4.4/4.5 and lots of volume. All very healthy, if you ask me.

I pricked up my ears at that point too (charging consultancy fees for bespoke advice re tailings management). Where should we look for income of that sort on the accounts? It's not my subject

Thanks for posting this, WellOil and Bullster. I note JLP have also advertised the interview on Twitter. There's quite a bit of meat in here and I think I need to listen a second time. As a knee jerk response, here's a question and a comment.

Leon spent a lot of time stressing that waste dumps are written down as a liabilities by the majors. If that is so, why do we have to pay so much to process them?!

Leon is bullish on fine chrome. He seemed to give the impression that we are already some way down the line to providing this process for majors other than Samancor. Does anyone else get that impression?
Overall a very good interview. He looks really fired up.

I'll second that BB2. Very much appreciated.

That was my understanding too, MH, though if it pays for itself in two years and the tailings run out in three, then the overall profit will be limited (though not to be sniffed at). Let's hope the depressed price of chrome concentrate improves and we reach the break even point a little earlier . (Of course we will, as the contract requires us to do, and there will be revenue from other sources as well, but you know what I am getting at).

extraordinary rise considering the lack of activity over the last few months. It's not gone un-noticed on the GCM board, there is no price activity over there.

Does anyone of this board have a clear idea how much we can sell our concentrate for? This seems an important question to me. This link is quite fun, but the variability in price is considerable: https://trade-metal.com/chrome-price-per-ton-s5356.html
Some concentrate is being flogged for $185 per ton. 10,000 tonnes would fetch $1.8 M at this price, and most of it would be profit. Am I miles wide of the mark here?

What I like about the current rally in the SP is that it is incremental, day by day, and is based on some decent volume. No doubt there will be a retrace after the news on Eland earnings as the traders consolidate their profits, but the sentiment is here now which is very encouraging.

I tend to agree that the capex to develop Tjate is eye watering. However, I am now wondering what the basket price needs to be to bring Quartzhill back onto the table.

It comes part and parcel with the copper, I believe.

Hopefully this is what he will be saying:

https://www.proactiveinvestors.co.uk/companies/news/900620/we-have-a-niche-a-brand-and-credibility-says-colin-bird-as-jubilee-metals-cashflow-opportunities-multiply-900620.html

All good points, Kalan. In the interview, LC mentions increasing throughput by 15%, so we can work out the current throughput (in the region of 45,000 tonnes per month).
I have also speculated that out greater autonomy over the operation could open the door to our use of the PGM processing facility (which cost a lot to construct) to process material from sources other than Hernic, though this may still be excluded by some contractual detail.

I don't think your estimate of 15% of the cost of pure metal is attributable to smelting and refining is that wide of the mark. It is certainly somewhere in that region.